www.usbfs.com | 1.800.300.3863

our visionDistinct Services

Mutual Fund Solutions

ETF Services

Alternative Investment Solutions

Enter the Digital Marketing AgeDistribution & Marketing

As potential customers of mutual funds actively seek advice from various sources other than financial advisers, clients of Quasar Distributors, LLC (Quasar) continue to show interest in integrating a strong digital communication program to support their sales efforts and build productive relationships. To stay competitive and better target investors, mutual fund companies realize the need to adapt to digital

resources. Quasar is building client awareness of potential social media strategies that will allow them to leverage specific branding and messages.

Whether through computers, smart phones, or tablets, investors increasingly search for fund investment information using the Internet. Firms leading the charge of self-directed technology are rebranding and adding infrastructure to enhance the performance of their websites. Quasar hosts websites using responsive design technology, which allows content to be viewed on a variety of platforms. Website structure can also be designed to be scalable so as clients add new content, pages open quickly when using mobile devices.

By distributing content and repackaging a message in an email campaign, blog article, news link, or press coverage, clients are sharing trending investments or personal financial news, giving customers a reason to revisit. Personalizing email marketing messages also improves the customers’ experiences.

Not only are we teaching clients how to apply new digital strategies to their marketing campaigns, we also are helping them stay informed by creating an account with Google Analytics and other Internet trend reporting for their websites. Using analytic tools is valuable in understanding customers’ needs, behaviors, preferences, demographics, and first time visits. Quasar includes tag words or Search Engine Optimization (SEO) words in client websites to target customers and help draw relative traffic to its sites.

Quasar can offer valuable insight for clients to use their own website and the Internet’s structure to attract and retain the next generation of investors.

Contact your relationship manager if you are interested in learning more about Quasar’s marketing services.

Sharing solutions on topics affecting our clients and their shareholders through innovative insights, sophisticated technology, and a solid tradition.

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Quintillion Completes Depositary Lite LicenseQuintillion Limited, LLC

Quintillion, a European based affiliate of U.S. Bancorp Fund Services, LLC, is excited to announce it has received its license to provide depositary lite services.

New depositary regulations are a component of the Alternative Investment Fund Managers Directive (AIFMD), a European Union directive put into place in July 2013 to regulate EU fund managers managing alternative investment funds as well as non-EU fund managers that market shares of or manage alternative investment funds established in the EU.

A key supplement to the Directive provides a framework for the regulation of depositaries to ensure a high standard of investor protection. Under AIFMD, EU alternative investment funds are required to appoint a single depositary; however, in the case where non-EU alternative investment funds are marketed in the EU, the fund is not required to appoint a single depositary but must appoint one or more entities to provide core depositary services.

These non-EU funds are not subject to the full set of regulations, but instead to a condensed set of rules referred to as “depositary lite,” which was established to allow funds to continue to use prime brokers for safekeeping assets, while appointing separate entities to provide cash monitoring and oversight. Fund administrators, such as Quintillion, are permitted to provide depositary lite services under the AIFMD directive.

This year, Quintillion received its depositary lite license. We are now in a position to offer depo-lite to any of our clients.

According to Kehoe, Quintillion plans to build out full depositary services over the next couple of years. “Growing out the depo-lite functionality will help us become a one-stop shop.”

For more information on our depositary lite services, contact Ken Somerville, Head of Business Development, at ken.somerville@quintillion.com.

“We have great plans to significantly grow the financial services business in Europe, and joining with U.S. Bank engineers our infrastructure to get ready for that; depo-lite is just the first step.”

- Joan Kehoe CEO of Quintillion

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www.usbfs.com | 1.800.300.3863

45& FORWARD

Happy 45th Anniversary to US!U.S. Bancorp Fund Services, LLC

On July 14, 1969, as a division of First Wisconsin National Bank, we began offering custody, transfer agent, and shareholder services with fewer than 75 employees working together on one floor in Milwaukee. Today, we have 1,202 employees operating in six states across the country including Wisconsin, California, Arizona, Illinois, Ohio, and New Jersey, as well in the Cayman Islands, Dublin, and London. In addition, we have added fund administration, fund accounting, and distribution services along with alternative investment and exchange traded fund service capabilities.  We have seen tremendous growth in our service model, service locations, employee count, and client base.

In the last 10 years alone:

  Our total assets under administration have nearly quadrupled from $224 billion to $918 billion.

  Our total clients have more than doubled from 247 to 520.

  Our total funds serviced have more than tripled from 921 to 3,138.

It is because of our hard-working U.S. Bancorp Fund Services team and our high caliber clients that we have been able to achieve exceptional growth and provide the outstanding, hands-on service our clients have come to expect. Thank you for helping us reach 45 years!

To learn more about U.S. Bancorp Fund Services visit www.usbfs.com.

We’re on Top!U.S. Bank

U.S. Bank was named one of The Milwaukee Journal Sentinel’s 2014 Top Workplaces in southeastern Wisconsin for the second consecutive year. Top Workplaces recognizes the most progressive companies based on employee opinions about company leadership, communication, career opportunities, workplace environment, managerial skills, pay, and benefits. According to the report, “Top Workplaces are not only better places to work but are more likely to be successful than peer organizations.”

“Great, smart, ethical leadership. Great colleagues—professional and fun.”

“I can effectively balance work and personal life. It is also very challenging and every day is different.”

- Employees U.S. Bancorp Fund Services

SUMMER 2014

our vision

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SUMMER 2014

our visionU.S. Bancorp Fund Services Achieves Roll of Honor in Global Custodian’s 2014 Mutual Fund Survey U.S. Bancorp Fund Services

Armed with our mutual fund and alternative product expertise and sophisticated technology, U.S. Bancorp Fund Services, LLC goes the distance to improve internal operations, enhance reporting functionality, and provide meaningful customer service and superior deliverables for our clients.

Thanks to the feedback we received from our biggest fans, our clients, our overall score was well above average in Global Custodian’s 2014 Mutual Fund Administration Survey. U.S. Bancorp Fund Services was praised for our “ability to support complex structures” and our “high quality personnel.”

We notably achieved a Roll of Honor nomination for both Transfer Agency and Compliance, the highest achievement in the survey. As a Roll of Honor nominee, we achieved a weighted average score in the top three of all providers in these categories.

We thank you, our clients, for your time and effort and look forward to continuing to provide you the high-quality, customer-centric services you’ve come to expect from U.S. Bancorp Fund Services.

For more information on our industry-leading services, contact your relationship manager.

Disaster Recovery Exercise a Success Risk Management & Compliance

On July 14, 2014, U.S. Bancorp Fund Services, LLC and Quasar Distributors, LLC executed their annual disaster and work area recovery exercise for each of their core business lines. Over 125 employees reported to work at the disaster recovery site located in West Allis, Wisconsin, with numerous employees working from home.

The exercise simulated a disaster recovery scenario of our Milwaukee locations being inaccessible. The disaster recovery evaluation was successful; all of the participants tested mission critical functions with no major exceptions noted. On

July 15, 2014, we also tested our transfer of work scenarios from our offices in Edison, New Jersey; Glendora, California; Mesa, Arizona; and West Allis, Wisconsin without any issues. An executive summary will be available on the CCO portal within the next month.

For information on our annual disaster recovery excercise, contact your relationship manager or visit the CCO portal.

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www.usbfs.com | 1.800.300.3863

Frequent and immediate

communication is critical

to the success of any

organization and our email

services allow you to

remain engaged with your

shareholders and partners.

Email Services Save You Time and Resources Transfer Agent

At U.S. Bancorp Funds Services, LLC we pride ourselves on our commitment to listen to and act on client feedback and suggestions. This helps to distinguish us as one of the most reliable and responsive third party transfer agents in the industry. Listening to clients provides us with the ideas to develop new products and services. Launching our email services solution is a direct result of effectively listening to our clients and creating a solution to benefit their customers.

This solution offers clients an effective and reliable way to handle inquiries from customers whether they are current or prospective shareholders or financial intermediaries. Our team works with clients or the funds’ distributor to create a library of principal-approved email responses to commonly asked questions and operational scenarios. We develop customized responses to address even the most unique customer inquiries where specific expertise is required.

Emails sent to client websites are seamlessly redirected to our Email Services team. We filter all emails received, sort out any spam, and focus on providing timely and thorough responses to true customer inquiries. This allows clients to focus on their core competencies while we support the current or future shareholders and other partners. Our

email technology ensures that any customer confidential information within an originating email is removed prior to response. Clients can be confident that customers are responded to promptly, accurately, securely, and in a manner consistent with the fund’s voice.

Customer emails and responses are archived and can be readily accessed for reference or audit purposes. As a result, clients can gain valuable insight into customer questions, needs, and concerns. Identifying trends through email can provide opportunities for marketing and operational enhancements.

Our Email Services team provides a convenient, compliant, and consistent voice for supporting and responding to your customers. Let us listen and respond to customers’ email inquiries while you focus on growing your business.

For more information on our email services, please contact your relationship manager.

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Shadow Administration Steps Into the SpotlightAlternative Investment Solutions

Whether your fund is serviced by an in-house accounting department or through a third party administrator, shadow administrators can act as a complement to your business by allowing managers to adapt to transparency needs, satisfy investor requirements, and aid in compliance issues.

Solution for In-house Accounting DepartmentsThe notion of outsourcing some or all of the components of an in-house back office group may not be an option due to the tenure and skill of the employees, sensitivity to releasing data, and high level of internal and external requests and demands. Many self-administered funds rely heavily on Excel-based tools, workbooks, and utilities to track and report key figures, which may be due to using systems that are not integrated. Shadow administration can act as a complement to internal back office departments.

Compliance and Legal ReportingInternal systems and excel based files may be hard to extract required data to meet FATCA, AIFMD, Form PF, CPO, PRQ, CTA-PR deadline and compliance requirements. Administrators employ experienced professionals well-versed in the nuances of applicable regulations and utilize centralized systems and databases programed to to meet reporting requirements.

Independent Service Provider & Due DiligenceThird-party independent administrators are viewed as a positive attribute for a fund manager to possess, and in some cases is required. The benefit is that administrators offer sophisticated platforms to allow managers and investors to access and interact with accounting and reporting data for due diligence reviews.

Providing Backup and Scalability SolutionsShadow administrators provide scalability and give managers time to focus on special requests and the internal demands of growing their business. Centralized reporting and data platforms aid in the year-end audit and tax preparation, and shadow administrators offer a real time backup and capacity solution should the need arise.

Solution for Those Who Already Use an AdministratorThere is a growing trend to have a shadow administrator in addition to a primary administrator. Shadowing provides the

key benefit of independent checks and balances. Contrary to popular belief, administrators do not view shadow administrators as direct competition, but instead welcome the addition of a secondary team of accountants to provide daily or monthly reconciliations and calculations.

The practice of engaging a third party service provider to shadow your books and records is a consideration for both self administered funds and in the case where funds are serviced by a third party administrator.

For information on our shadow administration services, contact Michael Secondo, global AIS sales manager, at michael.secondo@usbank.com.

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www.usbfs.com | 1.800.300.3863

Client Conference 2014: Reaching New Heights & Expanding Horizons TogetherU.S. Bancorp Fund Services, LLC

We were honored to host our valued clients, business partners, and friends at the 27th annual Client Conference held June 11-13 in Fontana, Wisconsin. Attendees at this year’s event gained knowledge, renewed friendships, and left The Abbey Resort with many fond memories.

The general session remarks were presented by U.S. Bancorp Fund Services, LLC President Joe Redwine and U.S. Bancorp Wealth Management and Securities Services Vice Chairman Terry Dolan. Featured presentations included panels on dealing with dealers and the SEC, and an overview on the outlook of the economy by keynote speaker Robert Genetski, interest rate forecaster and investment banker. Roundtable sessions covered topics including transfer agent account growth solutions, board best practices, operational aspects of derivatives, valuation trends and best practices, and educational information on expanding beyond traditional registered products.

Guests also enjoyed an evening of competitive entertainment playing Family Feud and activities ranging from leisurely boat rides, fishing trips, and the golf outing to thrilling zip lining adventures and interactive cooking lessons. Thank you to everyone who joined us at our 2014 Client Conference and worked to make it a success.

Clients enjoying a competitive game of USBFS Family Feud.

Conference guests enjoying cocktail hour on the lake front patio.

Guests taking a break to zip line through the trees in Lake Geneva.

WE LOOK FORWARD SEEING ALL OF OUR CLIENTS AT NEXT YEAR’S CONFERENCE, SCHEDULED FOR JUNE 10-12, 2015.

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SUMMER 2014

our vision

BUILDING ON FOUR DECADES OF INVESTMENT EXPERIENCEWith 45 years of service distinction, U.S. Bancorp Fund Services, LLC combines industry-leading technology with high-quality customer service to provide our clients with customized solutions. For more information about our comprehensive suite of mutual fund, alternative investment, and ETF products and services, call 800-300-3863 or visit www.usbfs.com.

U.S. Bancorp Fund Services, LLC 777 East Wisconsin Avenue Milwaukee, WI 53202

Please send your comments and suggestions to usbfsinfo@usbank.com. U.S. Bank does not guarantee the products, services, or performance of its affiliates and third-party providers.

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See US This Fall at the Following Conferences and EventsU.S. Bancorp Fund Services

From coast to coast, our team of professionals will be on-site at industry-leading conferences to discuss your servicing needs. Visit US at the following conferences and events.

September 15-16 | HFMWeek European Operational Summit, London, UK

September 16 | UK Partnership Event, London, UK

September 17-19 | Morningstar ETF Conference, Chicago, IL

September 21-23 | IMN Alpha Hedge West, San Francisco, CA

September 22 | U.S. Bancorp AIS Golf Outing, New York, NY

September 28-Oct 1 | ICI Tax & Accounting Conference, Phoenix, AZ

September 30-Oct 2 | Alternative Asset Summit, Las Vegas, NV

October 6-7 | IIR Liquid Alternative Strategies East, New York, NY

October 9-10 | 2014 FINRA Advertising Regulation Conference, Washington, DC

October 19-22 | RIA Wealth Trends Forum, New Orleans, LA

October 20-22 | NSCP National Meeting, National Harbor, MD

For more information about any of our upcoming events please contact us at usbfsinfo@usbank.com.

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